| We recently saw bullish indicators for housing demand. At the same time we saw bearish indicators for housing prices. Let's take a deeper look at the overall trend in real estate. The Housing Market Index (HMI) published by Wells Fargo (here) is indicating that demand for new homes is improving. The HMI is an index of over 300 home builders, which shows the demand for new homes.
The index runs from 0-100, so a rating of 50 would mean that demand for new homes was average. Chart 1 gives the HMI from 1985 onwards. The chart is showing a trend that is bottoming out since 2009 onwards. The HMI rose to the highest level since 2007. Still, demand for new homes is below average...............................................Full Article: Source
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